According to the largest natural gas infrastructure operator in Europe, as the global efforts to replace fossil fuels accelerate, the cost of clean hydrogen will fall to the cost of liquefied natural gas in ten years.

Thomas Baudelot, CEO of energy solutions in Asia Pacific region of Engie SA, a French utility company, said in an interview that today's green hydrogen is not competitive with alternative energy economically, and this will not happen in 10 years. Fuel is an important part of Engie's strategy.

At a time when the world is trying to reduce its dependence on coal and natural gas, people's interest in hydrogen is growing rapidly. If hydrogen is generated by renewable energy such as wind energy and solar energy, then hydrogen is considered green. Russia's invasion of Ukraine in February restricted fuel supply and raised prices, thus increasing its dependence on coal and natural gas.

Although clean technology is still at an early stage, 35 countries have developed hydrogen plans, and 17 countries are developing plans, which will help reduce the cost of electrolytic cells needed to produce fuel. The global energy crisis is accelerating the demand for renewable energy in Asia to replace expensive fossil fuels. Part of Engie's expansion in Asia will include selling green hydrogen to customers, and Australia will become the production center in the region. We used to call customers, mr. baudelot said. Now, the customer calls us. They want to be faster and bigger.

Last month, Engie made the final investment decision for the Yuri Renewable Hydrogen Project in Pilbara, Western Australia. The first phase is planned to be completed in 2024. Baudelot said that the company also hopes to expand in Malaysia and the Philippines with favorable regulations. Keywords: overseas news, engineering news

He said that liquefied hydrogen faces a dilemma because it requires a lot of energy. According to the US Department of Energy, this process is expensive, consuming more than 30% of the energy in the fuel. The density of this fuel is also lower than that of LNG, so large-scale transportation requires the establishment of new fleets, infrastructure and technologies. These restrictions are why Bloomberg NEF estimates that by the end of this century, the cost of liquefaction and transportation of green hydrogen from Australia to Japan will be about $30 per million British thermal units. This is almost three times the transport price of similar LNG under the long-term contract of Australia's export facilities, but it is not far from the current spot price.Editor/Xing Wentao